The tariff classification of diamonds from India; partial duty exemption for U.S. origin

N359018 March 16, 2026 CLA-2:OT:RR:NC:N1:126 CATEGORY: Classification TARIFF NO.: 7102.39.0010, 7102.39.0050, 9802.00.5060 CJ Erickson Cowan, Liebowitz & Latman 114 West 47th Street New York, NY 10036 RE: The tariff classification of diamonds from India; partial duty exemption for U.S. origin Dear Mr. Erickson: In your letter dated February 19, 2026, on behalf of White Pine Wholesale LLC, you requested a tariff classification ruling. The merchandise under consideration is described as cut and polished diamonds recovered in the United States from post-consumer jewelry. You state that after the jewelry is dismantled domestically, the unset stones are inspected, graded, and sorted. You further state that the diamonds requiring restorative work are exported to India, where they undergo limited cleaning, re-polishing of existing facets, minor smoothing of facet junctions, and, in rare cases, removal of small, damaged portions prior to polishing. You indicate that no new facet pattern or commercial cut is introduced and that the diamonds remain classifiable in subheading 7102.39, Harmonized Tariff Schedule of the United States (HTSUS), before export and upon return. The applicable subheading for the diamonds weighing 0.5 carat or less will be 7102.39.0010, HTSUS, which provides for “diamonds, whether or not worked, but not mounted or set: nonindustrial: other: weighing not over 0.5 carat each.” The general rate of duty will be free. The applicable subheading for the diamonds weighing more than 0.5 carat will be 7102.39.0050, HTSUS, which provides for “diamonds, whether or not worked, but not mounted or set: nonindustrial: other: weighing over 0.5 carat each.” The general rate of duty will be free. Your request also concerns the eligibility of the diamonds under subheading 9802.00.5060, HTSUS. Subheading 9802.00.5060, HTSUS, provides a partial or complete duty exemption for articles returned to the U.S. after having been exported to be advanced in value or improved in condition by any process of manufacture or other means, provided that the documentary requirements of Section 10, Customs Regulations (19 CFR 10.8) are satisfied. Pursuant to 19 CFR 10.8, the importer must submit a declaration executed by the person who performed the repairs or alterations and a declaration of his own containing various attestations. Articles eligible under subheading 9802.00.5060 are subject to duty upon the value of the repairs, alterations, processing, or otherwise changes in condition abroad, pursuant to Note 3 to Subchapter II, Chapter 98, HTSUS. We find the described foreign processing acceptable for the purpose of subheading 9802.00.5060, HTSUS. Accordingly, upon reimportation, the diamonds will be eligible for tariff treatment under 9802.00.5060, HTSUS, provided the documentary requirements of 19 CFR 10.8 are satisfied. The duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the classification stated above, the merchandise covered by this ruling may also need to be reported with either the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions covering exceptions to such tariffs. For further information to assist with the importation process, please refer to the frequently updated Cargo Systems Messaging Service (CSMS) messages at https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at https://www.cbp.gov/trade/programs-administration/trade-remedies. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Yani De Leon at yaniri.deleon@cbp.dhs.gov. Sincerely, (for) James Forkan Designated Official Performing the Duties of the Division Director National Commodity Specialist Division